FOREX TRADING

The EURUSD had a significant bullish momentum yesterday, topped at 1.2854 and closed at 1.2807 after price break above the triangle. Positive data from China and Australia trigger risk appetite and hurt the Dollar. The “head and shoulders” bearish scenario remains intact but clearly under heavy pressure as price is now move above the neckline (1.2700). A new trend line resistance (yellow) is drawn as a result of yesterday’s price action. Break above that trend line and 1.2854 could trigger further upside pressure testing the right shoulder of the H&S formation around 1.2930 which could be a serious threat to the bearish outlook and potential bullish reversal scenario. On the downside, I think we need another move below 1.2700 to see further bearish pressure.

GBPUSD Outlook

The GBPUSD was corrected higher yesterday on broad Dollar weakness, topped at 1.5489 and closed at 1.5451. The major bearish scenario remains intact but I think we could have another potential upside correction testing the trend line resistance (red) and 1.5525 – 1.5575 area especially if price break above 1.5489. Immediate support at 1.5385. Consistent move below that area could trigger further bearish pressure re-testing 1.5326 before targeting 1.5250 region.

USDJPY Outlook

The USDJPY attempted to push lower yesterday, bottomed at 83.67 but further bearish pressure was rejected and closed higher at 84.43. Potential range area at 84.82 – 83.59 but still within a major bearish scenario. Break above 84.82 could trigger further upside pressure but only a move above the trend line resistance could be a serious threat to the current bearish outlook.

USDCHF Outlook

The USDCHF attempted to push lower yesterday, bottomed at 1.0065 but closed higher at 1.0156 and keep moving higher around 1.0175 at the time I wrote this comment. On daily chart below we can see that although yesterday’s price action not really made a hammer candle stick formation for potential upside pullback, but the fact that price is now back above 1.0130 could trigger further upside correction testing 1.0220 area as bearish pressure may have exhausted. Break above 1.0220 could trigger further upside momentum testing the trend line resistance (red). The major scenario remains bearish but we need a consistent move below 1.0130 to see further bearish pressure testing 1.0030.

EURJPY Outlook

The EURJPY was corrected higher yesterday, topped at 108.59 and closed at 108.13. As you can see on my h4 chart below, overall price is in bullish correction phase after bottomed at 105.43 and making a bullish channel. Immediate resistance at the minor trend line resistance (red) and 108.59. Break above that area could trigger further upside correction testing 109.20/50 region. Immediate support at 107.65. Consistent move below that area could trigger further bearish pressure testing 106.57 but as long as price move inside the bullish channel the upside correction scenario remains intact.

GBPJPY Outlook

The GBPJPY also corrected higher yesterday, but still unable to break above 130.80 resistance so far. Potential range at 130.80 – 128.65. Break above 130.80 could trigger further upside correction towards 132.00 before testing the upper line of the bearish channel but as long as price move inside the bearish channel the major scenario remains bearish. On the downside, we need a break below 128.65 to continue the bearish scenario testing 126.75.

AUDUSD Outlook

The AUDUSD had a significant bullish momentum yesterday, break above 0.9040 resistance area, topped at 0.9113 but traded lower around 0.9070 at the time I wrote this comment. The bias is bullish in nearest term testing 0.9145. Another move below 0.9040 could lead us into neutral zone with potential downside pullback testing 0.8950/60 region but as long as price move inside the bullish channel and above 0.8858 key support area I still prefer a bullish scenario